Threats to Property Rights in Russia: From Private Coercion to State Aggression

Abstract

This article explores a fundamental shift in threats to property rights in Russia. Whereas extortion rackets and other forms of physical intimidation once posed the gravest threat to property rights, state actors are now the primary aggressors. Based on in-depth interviews and an original survey of Russian firms, the article demonstrates a dramatic decline in threats related to private coercion, due partly to firms' increased reliance on formal legal institutions. By contrast, state threats to property rights have increased sharply. Key threats include seizing firms' assets, illegal corporate raiding, extortion, illicit fines, and unlawful arrests of businesspeople.